Hi Tim,

Formally assuming the loan (as it stands currently) means you'd have to go through almost the same process as a regular mortgage qualification process. Many of the impending foreclosures are due to the strict lending requirements currently in place and buyers can't buy (using a bank) even if they wanted to. Met an attorney the other day, 730 credit score and 60K in the bank. Couldn't get a loan. But hey he qualified for one of our owner financed homes!

Buying an owner financed home is a good option to consider. But make sure you don't settle for rent to own, lease purchase or lease option. Yuck. Those you pay a high price tag without really being the owner or getting the awesome tax credit currently in place. No matter how much you like the home you're taking a huge risk with your down payment on those lease option/rent to own deals.

Check out my websites for current owner financed homes:
http://www.GreatHomesTexas.com
http://www.AustinOwnerFinancedHomes.com/

And with us your name goes on title and you get the deed the day you pick up your keys at closing.

Call me 373-6131 if you have any specific questions.

Best of Luck,

Jessica

It depends on what you mean by assuming mortgages. A lot of people incorrectly "assume" that assuming mortgages and seller/owner financing are similar when in fact they are not. As Jana said below, most mortgages nowadays are not assumable -- that is you cannot call the bank and say "hey I found this bum off the street who needs a home so I am going to let him take over my mortgage. Don't bother trying to qualify him because he is jobless as well as homeless." I guess you can, but good luck there.

Seller or owner financing is a little different. Anybody, ANYBODY can sell a house and offer owner financing. It doesn't mean that their mortgage company will necessarily like this. Essentially what you are up against is the possibility of the bank "calling the note due" if/when they find out that the owner sold the home and did not pay off the mortgage lien. BUT, do they really want another house to put in their already gargantuous inventory?

Bottom line...If you do it, do it right, do it ethically and stay on the right side of the law.

No.

However, there are some seller financed opportunities which allow you to, in essence, take over the payments. Interested?

Not usually. Most loans in recent years are not-assumable. And if they are assumable, you must qualify & pay the equity which is on the house anyway. You don't just normally walk into a house just taking over the notes. In our area we don't have nearly as many pre-foreclosures or foreclosures as the rest of the country does. A seller in a difficult situation would potentially hire a Certified Distressed Property Expert to handle a short sale of the property with the lender.

Jana McCool - RE/MAX Austin Associates
512/280-2665
Jana@JanaMcCool.com